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Research on Financial Risk Control of Growth Enterprise

Author: DiaoYuJing
Tutor: CuiGuoPing
School: Hebei University of Economics
Course: Accounting
Keywords: Growth companies Financial Risk Risk Control
CLC: F275
Type: Master's thesis
Year: 2011
Downloads: 763
Quote: 0
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Abstract


China in the process of economic transformation spawned many growth companies. Since growth companies to maintain high-speed growth, can produce huge economic benefits to China's economic power and unprecedented new life, will promote China's national high-speed, continuous development, therefore, growth companies have a very great prospects for development. But growth companies often most likely to fail, because in the process of rapid growth, inadequate control of financial risk if the enterprise will fall into the abyss of losses or even bankruptcy. Obviously, growth-oriented corporate financial risk control problem is very important. In this paper, research-based norms, combined with case studies on the growth enterprise financial risk control issues. First, the paper reviews the results of previous studies, mainly from the risk management and internal control two angles, discusses in detail the domestic and foreign experts and scholars Research for financial risk, as this study provide a reference; Secondly, the utility theory, the theory of internal control and risk management theory analysis, for growing businesses build financial risk control system provides a theoretical basis. Financial risks related theoretical explanations complete, defines the meaning of growing businesses and characteristics. This paper argues that the essence of growing businesses in its high-growth, and companies must be accompanied by the rapid growth of high risk. Examining the status of financial risk growth companies, mostly exist to varying degrees, limited internal accumulation and external financing difficulties, the capital structure is irrational, investment decisions, unrelated diversification and slow cash flow problems, this paper because of its macroeconomic environment from factors and internal factors are two key aspects to reveal itself, and then build a more viable growth companies financial risk control system. The system is based on net cash flow for the direct control of the target to maximize enterprise value maximization as the ultimate control objectives, cash flow from financing activities, cash flows and investing cash flows from operating activities for the control object exists for growing businesses financial risks, proposed budget control , financing risk control, investment risk control and operational risk control and discussed separately, come to a reasonable and effective specific financial risk control measures. Finally, combining city's case, the use of growth-oriented financial risks are building control system to analyze an example. This article is based on growth companies, in-depth analysis of the growth enterprise financial risk control problem. For growth-oriented characteristics of the enterprise's own financial risk, net cash flow was constructed to maximize control target growth companies financial risk control basic rack frame for growing businesses financial risk control study provides a new perspective.

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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management
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